MORE than 100,000 staff at some of Scotland’s biggest employers have been given access to a new government-backed savings scheme.
Work and Save Scotland was launched earlier this year aimed at reducing money worries for employees through payday saving.
A dozen household names like Scottish Water, Scottish Enterprise, Glasgow University and Edinburgh Airport have signed up to the scheme, along with North Lanarkshire, South Lanarkshire and North Ayrshire Councils.
Work and Save Scotland gives employees access to savings plans with credit unions, with payments deducted straight from their salaries.
The Scottish Government launched the scheme in January and it has since been adopted by the UK’s Money and Pension Service Scotland.
Social Justice Secretary Shona Robison yesterday praised the scheme for “helping to create a valuable financial buffer” in people’s lives.
More employers are preparing to join the scheme after discovering staff - particularly younger workers - like savings being held by non-profit Scottish credit unions who have teams of local advisers to help with financial knowhow.
Robison added: “We know families are struggling with the cost of living crisis and are being hit hard, particularly with rises in energy bills and food costs.
“This is why we’ve allocated £3 billion this year to help mitigate the effects.
“I’m delighted that the Work and Save programme, funded by our Scottish Community Lenders Fund, is helping people to create a valuable financial buffer by developing workplace savings schemes.
“Putting a small amount of money aside on payday can make it easier for people to prepare for unexpected costs.”
Maria Bradshaw, People Director at new Work and Save employer Scottish Enterprise, said: “Supporting employees with financial wellbeing goes beyond ensuring fair and equal pay.
“It’s also about providing useful resources and simple ways to budget or save for when circumstances might change and impact on finances.
“Scottish Enterprise has long-standing relationships with credit unions and giving our employees access to save with credit unions direct from their salaries is one of a number of ways in which we aim to support staff with solutions to safeguarding their financial wellbeing.”
The Scottish Government believes credit unions are an under-used source of financial know-how and help.
Allison Barnes, Scotland Manager at the Money and Pensions Service, said: “As part of plans in Scotland to deliver our UK Strategy for Financial Wellbeing and our goal to increase the number of new UK savers, we have highlighted Work and Save Scotland as a good example of workplace schemes to help people build a savings buffer.
“Employers have an important role to play in supporting their employees’ financial wellbeing and resilience. We hope more will take up similar initiatives to help their employees get into a savings habit.”
One of Scotland’s largest social enterprises, The Wise Group, has also signed up to Work and Save Scotland. People Director Suzanne McWilliams said: ““We are delighted to be working alongside Work and Save Scotland. It’s great to be able to support colleagues’ financial wellbeing, giving them the tools to save for when they need it.
“As the cost of living crisis deepens, we hold as our top priority supporting our colleagues so that they can support others to their fullest. This has included cost of living financial uplifts, financial support with groceries and mental health support partially delivered through our excellent Headstrong sessions.”
Some modern credit unions now offer not-for-profit car loans and mortgages even, without the need to go to commercial lenders.
The Scottish branches of large multinational companies have also joined forces, including Japanese global leader in microchip production Shin-Itsu Handotai.
The education sector has started to get involved, with the UK’s largest college, Dundee and Angus, and Glasgow University taking the lead.
Work and Save Scotland is run by Action for Financial Inclusion and more information and spokesman Graham Brough said: “The research is clear - debt destroys families.
“Scotland is leading the way in asking employers to help. Shaving a bit off on payday builds up a nest egg that solves so much.”
More information is available here.
